As we’ve mentioned in recent weeks, despite overall volatility in global markets, disposable gloves are in a good place.
The first half of 2023 has seen a number of factors pose challenges: threats of recession, interest rate hikes, persistent inflation, and a general sense of dread about the short-term health of the economy (which has, nevertheless, largely remained strong).
Fentanyl—a synthetic opioid pain reliever—is 50-100 times more potent than morphine and 30-50 times more potent than heroin. Fentanyl can be up to 100 times stronger than morphine. Illegal, synthetic versions of the drug lead to overdoses and expose first responders and law enforcement in the line of duty.
Often distributed clandestinely in other street drugs, fentanyl can lead to overdose deaths and serious health problems. In 2021, more than 71,000 people died of synthetic opioid overdoses, according to the Centers for Disease Control and Prevention, up from 58,000 in 2020. Fentanyl overdoses are among the leading causes of death in the country for people ages 18 to 45.
The disposable glove market—like all markets—loves economic stability and predictability. Uncertainty will lead distributors, sellers, and end users to plan for the worst when it comes to pricing.
The first half of 2023 has been volatile for markets. Investors have had to contend with the possibility of a recession, a banking crisis, interest rate hikes (and pauses), sticky inflation, and a softening U.S. economy. The International Monetary Fund warned in the spring of volatile commodity prices posing economic challenges in coming years.
But this economy just won’t give in to negative expectations.
When it comes to the disposable glove market, demand planning—pricing and inventory—is the focus of most conversations. We understand why: Clients want to know when it will return to a predictable state, similar to four or five years ago.
The disposable glove market was consistent for almost a decade, with stable prices and predictable growth, leading up to 2020. The key variables that shape it (production, logistics, distribution, etc.) had been well-optimized.
A fair amount of confusion tends to surround the thickness of single-use gloves.
Do not be alarmed! For all the claims by producers and vendors touting the superiority of their gloves based on how thick they are, it’s important to keep this in perspective: Glove thickness is not an exact science, nor is it the be-all, end-all measurement of disposable gloves.
International shipping is another cost variable that exerts outsized influence on the price of disposable gloves.
Ocean freight rates in 2023 have been on a steady decline for shipping containers from SE Asia to U.S. West Coast ports. Experts fear transport companies will try to force up prices by making fewer voyages and leaving containers behind, delaying the delivery of goods.
The three primary variables that have an often outsized impact on the single-use glove market are production, international logistics, and U.S. market conditions. Within those variables are a number of sub-variables that can move in opposite directions and in different timelines.
Production happens primarily in Southeast Asia, where up to 80% of single-use gloves are made. The biggest glove-making countries are Malaysia and Thailand—which have dominated the glove trade for years—Vietnam, and Indonesia. China is also a growing player in the global market.
Where were you in 1988?
Maybe already running your distribution business. Or still in school, studying hard to build a better tomorrow for yourself. Or maybe not even born yet.
We often encounter confusion about different types of disposable gloves and which is the right choice for any given job.
A great example is “surgical gloves.” You may have heard or seen—in media coverage or TV police procedurals—a criminal said to be wearing surgical gloves while committing a crime, whether it’s a bank heist or (shudder) a serial killer at work.
We frequently hear from customers who say they bought gloves from another vendor at a low price, but they can’t find that deal again. In fact, that vendor can’t seem to source the glove at all.
If you’re an industrial distributor, you’ve likely come across vendors who can’t be trusted to consistently deliver what you need at a price that works for you. Sure, it’s nice to save a few bucks here or there on a case of gloves, but can you count on that arrangement to hold up over time?
